For generations, a checking account was a rite of passage. Parents helped their teens open a bank account, maybe with a debit card attached, and taught them how to track spending, save allowance, and (hopefully) build some financial discipline. But in 2025, the script has changed. Gen Z is rewriting the rules of personal finance—and increasingly, they’re ditching banks for brokerages.
Welcome to the age of teen investors.
The Shift: From Saving to Investing
For many members of Gen Z—those born between the mid-1990s and early 2010s—financial literacy began not with budgeting spreadsheets, but with TikToks about stocks, YouTube explainers on ETFs, and Reddit threads about meme stocks. While millennials were the first digitally-native generation, Gen Z is the first investing-native one.
According to a 2024 Morningstar survey, 43% of Gen Z teens (ages 13–19) report having used an investment platform or stock trading app. Compare that to just 23% of millennials at the same age. And while millennials primarily entered investing through employer-sponsored retirement accounts, Gen Z is starting much earlier—and on their own.
The shift is not just about access, but intent. Teen investors today aren’t looking to park their cash in savings accounts yielding less than 1%. They want exposure to the market, returns that beat inflation, and sometimes—admittedly—bragging rights on Discord.
Why Is This Happening?
Several key trends are fueling this investing-first mindset:
1. Increased Access to Tools
Thanks to platforms like Fidelity Youth, Greenlight, Step, and even Robinhood, teenagers can now access custodial accounts with low barriers to entry. These apps are designed with intuitive interfaces and educational tools, sometimes gamifying investing to make it feel more like Duolingo than Bloomberg Terminal.
Many platforms allow fractional share investing, enabling teens to buy into Tesla or Apple with just $5. Others let parents co-manage accounts, giving teens financial autonomy within guardrails.
2. TikTok and Fintok Influencers
Social media has replaced the classroom as the primary source of financial knowledge for many teens. Influencers like Humphrey Yang, Tori Dunlap, and Mark Tilbury—as well as countless smaller creators—regularly break down concepts like compounding interest, Roth IRAs, and covered calls for audiences that include middle and high schoolers.
While some of this advice is questionable, it sparks curiosity. Financial literacy is no longer limited to those with access to formal education—it’s viral.
3. Cultural Shifts Toward Ownership
Gen Z has seen volatility firsthand: a pandemic, meme stock rallies, crypto crashes, and inflation. But they’ve also seen the power of wealth-building—early investors in NVIDIA, Bitcoin, or Shopify turned modest stakes into fortunes. This generation doesn’t just want to save—they want equity.
They also value financial independence more than prior generations. A 2023 Bankrate study found that 71% of Gen Z respondents said they aspire to retire before 60—an ambitious goal that simply isn’t possible by saving alone.
4. Mistrust of Traditional Institutions
Growing up during the 2008 financial crisis and watching the SVB collapse unfold on social media in 2023, many Gen Zers are skeptical of traditional financial institutions. Banks are seen as slow, opaque, and sometimes predatory with fees. Brokerages, by contrast, feel modern, transparent, and aligned with their values—even when that perception isn’t always accurate.
The Pros and Cons of Teenage Investing
Pros:
- Early Exposure to Financial Literacy: Teen investors who understand risk and reward by age 16 are lightyears ahead of their peers.
- Compound Growth Advantage: A $100 investment at age 15 could be worth over $5,000 by retirement, assuming 10% annual returns.
- Empowerment and Engagement: Teens involved in investing often take more ownership over other financial decisions.
Cons:
- Risk Misunderstanding: Many teens chase momentum stocks, crypto, or speculative trades without understanding the underlying fundamentals.
- Short-Termism: The fast-paced environment of social media can encourage gambling over long-term investing.
- False Confidence: Early wins can breed overconfidence, especially during bull markets.
What Parents (and Teens) Should Do
Rather than fearing teen investing, families and educators should embrace and shape it. Here’s how:
- Start with Custodial Accounts: Platforms like Fidelity Youth or Charles Schwab’s Custodial Roth IRA are ideal for structured, goal-oriented investing.
- Encourage Index Investing: Teach teens to allocate the majority of their portfolio to ETFs or diversified funds, with only a small portion for speculative picks.
- Discuss Risk and Losses: Conversations about volatility, market cycles, and diversification are crucial for building resilient investors.
- Set Long-Term Goals: Link investing to life goals—college, car purchases, or retirement—to give it real-world relevance.
What This Means for the Future
As Gen Z comes of age, they’re poised to be the most financially active generation in history. With earlier exposure to investing, digital-first tools, and a cultural appetite for ownership, they will redefine the personal finance landscape.
Banks may still play a role—but it’ll be secondary. For Gen Z, investing isn’t just about making money—it’s about taking control.
